Question

During October 2016, Willis Computing completed these transactions: a. The business received cash of $ 4,300 and issued common stock. b. Performed services for a customer and received cash of $ 6,200. c. Paid $ 4, 200 on accounts payable. d. Purchased supplies on account, $ 1,000. e. Collected cash from a customer on account, $ 1,600. f. Consulted on the design of a computer system and billed the customer for services rendered, $ 4 300. g. Recorded the following business expenses for the month: (1) paid office rent--- $1,500; (2) paid Advertising--$850. h. Declared and paid a cash dividend of $ 2,700. Cash + Accounts + Supplies + Equipment + Accounts + Common +Retained Type of Equity Receivable Payable Stock Earnings Transaction 2,250 3,550 11,700 8,100 5,500 3,900 (a) 4,300 (Cash); 4,300 (Common Stock); Issued stock 0 (b) 6,200 (Cash); 6,200 (Retained earnings); Service revenue (c) (4,200) (Cash); (4,200) (Accounts payable) (d) 1,000 (Supplies); 1,000 (Accounts payable) (e) 1,600 (Cash); (1,600) (Accounts receivable) (f) 4,300 (Accounts receivable); 4,300 (Retained earnings); Service revenue (g) (2,350) (Cash); (2,350) (Retained earnings); Expenses (h) (2,700) (Cash); (2,700) (Retained earnings); Dividends Bal, (Cash) 5,100 (Accounts receivable) 6,250 (Supplies)1,000 (Equipment)11,700 (Accounts payable) 4,900 (Common Stock) 9,800 (Retained earnings) 9,350 Total, 24,050 = 24,050 Requirement 1. Journalize the October transactions of Willis Computing, Inc. (Record debits first, then credits. Exclude explanations from any journal entries.) Requirements 2 and 3. 1. Prepare T-Accounts for each account. 2. Insert in each T-account its September 30 balance as given (example: Cash $ 2,250). 3. Then, post the October transactions to the T-accounts. Compute the balance in each account. 4. Begin by entering the appropriate beginning balances and posting transactions (a) through (h). 5. Label each balance and transaction with the appropriate posting reference. 6. 6. Finally, label and calculate each ending balance. (For accounts with a zero beginning balance, do not enter a "0" or select the "Bal" reference.) Review the journal entries from Requirement 1. Please solve all requirements from 1-3 with explanations for how these were solved.

Answer 1

Journal Entry in the Books of Wills Computing        (Amount in $)
	Name of Account & Description	Debit	Credit
Oct	Cash A/c	4300
	Common Stock A/c		4300
	(To issued cosmmon stock)
Oct	Cash A/c	6200
	Service Revenue		6200
	(To services performed )
Oct	Accounts Payable A/c	4200
	Cash A/c		4200
	(To paid acct. payable)
Oct	Supples A/c	1000
	Accounts Payable		1000
	(To supplies purchased)
Oct	Cash A/c	1600
	Accounts Receivables A/c		1600
	(Collected from customers)
Oct	Accounts Receivables A/c	4300
	Service Revenue		4300
	(To customer billed)
Oct-31	Rent Expenses A/c	1500
	Advertisement Expenses	850
	Cash A/c		2350
	(Rent paid)
	(To expenses paid)
Oct-31	Retained Earnings A/c	2700
	Cash A/c		2700
	(Dividend paid)